Saudi Aramco (ARAMCO) Earnings: FY Operating Profit Aligns with Estimates Despite 11% Decline

Saudi Aramco on Smartkarma

Analysts on Smartkarma, like Suhas Reddy, have been closely monitoring Saudi Aramco‘s performance. In an Earnings Preview, concerns arise as weak oil prices are expected to squeeze margins in Q4. Despite a projected 2.6% revenue decline QoQ, a 10.6% rise YoY is expected. The quarter’s EPS is anticipated to drop 7.5% QoQ. With growth reliant on oil prices and limited output due to OPEC cuts, partnerships and acquisitions, such as with Unioil Petroleum Philippines, are key for revenue expansion.

In another report, Suhas Reddy discusses how Aramco maintained dividends despite declining Q3 profits, leading to a shift to a net debt position. The company faced a 15.4% YoY profit drop due to weak oil prices and refining margins. Even though total hydrocarbon production increased QoQ, revenue fell short of estimates. Aramco’s ability to manage its dividend payouts and navigate through challenging market conditions will be crucial for its financial health and investor confidence.

A look at Saudi Aramco Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

In assessing the long-term outlook for Saudi Aramco, the Smartkarma Smart Scores provide valuable insights. With a high Dividend score of 5, investors can expect strong returns in the form of dividends. Additionally, the company has solid Resilience and Momentum scores of 4, indicating its ability to withstand economic fluctuations and maintain positive market performance. While the Value and Growth scores are moderate at 3, Saudi Aramco‘s overall outlook remains positive, supported by its robust dividend yield and stable market momentum.

Saudi Aramco, officially known as Saudi Arabian Oil Co., is a leading player in the oil exploration industry. Specializing in hydrocarbons exploration, production, refining, and distribution, the company also offers crude oil marketing services to a global clientele. With a focus on delivering consistent dividends, Saudi Aramco‘s strong Dividend score of 5 reflects its commitment to rewarding investors. Despite moderate scores in Value and Growth, the company’s resilience and market momentum position it well for long-term success in the ever-evolving energy sector.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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